The Japanese yen weakened past 156 per dollar on Friday, hitting its lowest point in nearly four months, as investors digested the latest GDP data.
Yen dips against dollar on slowing economy news
Japan's economy grew by 0.2% quarter-on-quarter in Q3 2024, a slowdown from the 0.5% growth in Q2, but still marking the second consecutive quarter of expansion. On an annualized basis, GDP grew by 0.9%, a sharp deceleration from the 2.2% gain in Q2.
Eyes on the Bank of Japan
Uncertainty over the Bank of Japan’s policy normalization persists, as mixed economic data and a recent political shake-up cloud the outlook. However, the central bank maintained its forecast that it could raise its benchmark interest rate to 1% by the second half of fiscal 2025. Meanwhile, the yen remained under pressure from a strengthening US dollar, which surged on expectations that the Federal Reserve is unlikely to cut rates in the near term.
